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2017 (3) TMI 241 - AT - Service TaxLevy of penalty - amount received as consideration but did not deposit the same with government account due to shortage of trained staff and lack of awareness of Service Tax Law - whether benefit of Section 73(3) of FA as per which no SCN to be issued once the service tax and interest are paid, shall be available to appellant or not? - Held that: - The appellant who has collected the service tax from the recipients of the service cannot take a plea that there was no willful suppression of facts from the department as collection of service tax from recipient of service implies that tax collected needs to be deposited with the government. The service tax collected if not deposited with the government automatically leads to an inference that there was an intention on the part of the appellant to evade the tax. The apex court decision in the case of Rajasthan Spinning and Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA] relied upon, wherein it has been held that once the ingredients spelt out in the Section 11 AC of the CEA, 1944 are present, there is no discretion to the authorities to waive the penalty on the ground that the duty and interest has been paid before the issuance of SCN. Appeal dismissed - decided against appellant.
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